India & Russia Stepped Closer With Revised Financial Policies

news rupee ruble
August 23, 2022

India and Russia have a legacy of decades of cooperation and support. Marching on its way to the forefront, the officials of both the countries have taken in some of the great reforms to strengthen the relationship between both the countries, this time financially. 

With this, Russia’s Mir payment system may soon be accepted at ATMs and the Point of Sale terminals in India as the two nations continue discussion to build a financial system which would not be affected by Western sanctions on Russia.

The European and Asian giant is also likely to accept India’s RuPay payment system.

As per the popular national daily, “the mutual acceptance of Mir and RuPay cards for hassle-free use of the cards by Russian and Indian visitors in each other’s countries was among the issues discussed during recent engagements between the two nations, including during the visit of India’s National Security Advisor Ajit Doval to Moscow on August 17 and 18.”

The National Security Advisor of India met with the Secretary of the Security Council of Russia, Nikolai Patrushev and Deputy Prime Minister and Minister of Industry and Trade, Denis Manturov, and other officials of the Russian government to discuss the area of further cooperation and associations.

Both the countries are actively working on the interaction of Unified Payments Interface (UPI) of National Payment Corporation of India and the Faster Payments System (FPS) of the Bank of Russia

Apart from this, 15+ Russian banks are in talks with the Indian lenders to promote the bilateral business of their respective currencies (Rubles & Rupees respectively). With this the customised trade a/cs with Indian lenders bypassing will be establishing the trade mechanism tied to the US dollar, and would be working on building a bespoke reference exchange-rate framework.

Petersburg Social Commercial Bank, Zenit Bank and Tatsotsbank are among the Russian lenders likely to open these customised trade accounts. Bank of India, Canara Bank and Uco Bank are likely to be the local partners of the lenders from Moscow.

Several bodies like Indian Banks’ Association (IBA), Indian Economic Trade Organisation (IETO) are actively involved in officiating the procedures. The customised common reference exchange rate would be announced daily by both the Reserve Bank of India (RBI) and the Central Bank of Russia.